London - 18 October 2006

Reuters (LSE: RTR; NASDAQ: RTRSY) has agreed to sell its fifty per cent stake in Factiva to joint venture partner Dow Jones for $160 million - $153m in cash on closing plus $7 million in preferred stock issued by Factiva. Completion of the transaction is subject to regulatory approvals and other customary closing conditions and is expected to occur by end of 2006.

Since Factiva was founded by the two parent companies in 1999 it has recorded consistent growth and gone on to become the leading global supplier of archival news and business information.

Under the terms of the deal Factiva will become a subsidiary of Dow Jones. Reuters will continue to supply its news to Factiva under an agreement as a paid supplier and will enter into or continue a number of commercial arrangements with Factiva and Dow Jones.

The sale and other arrangements as a whole are expected to be neutral to Reuters adjusted earnings in 2007 and 2008, which exclude profit on disposals among other items.*

Tom Glocer, Reuters Chief Executive, said: “Dow Jones has been a very good partner and together we have built a valuable asset in Factiva. We view this transaction as the natural conclusion to this successful joint venture. We wish Dow Jones every success in taking Factiva to the next phase of its evolution.”

Final proceeds will include, in addition to the $160 million total consideration, half of all cash remaining on Factiva’s balance sheet after settlement of any outstanding inter company items, and will be subject to adjustment based on the working capital of Factiva at closing. In connection with the transactions, Reuters has agreed not to compete with Factiva’s core business for a two-year period, and to continue the exclusivity arrangements currently in place with respect to certain Reuters content provided to Factiva.

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